Ex-NPS official grilled in connection with corruption scandal
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Hong Wan-seon, former chief investment officer at the National Pension Service (NPS), enters the independent counsel’s office in southern Seoul, Monday, to be questioned over the government’s alleged pressuring of the NPS to vote for a merger of two Samsung Group affiliates in favor of the group owner family, in return for providing money for President Park Geun-hye’s confidant Choi Soon-sil. / Yonhap
By Kim Se-jeong
Members of independent counsel Park Young-soo’s team questioned Hong Wan-seon, the former chief investment officer for the National Pension Service (NPS), Monday, in a widening investigation into the corru
ption scandal involving President Park Geun-hye and her confidant Choi Soon-sil.
Investigators also raided homes of former Health and Welfare Minister Moon Hyung-pyo and Kim Jin-su, the current presidential secretary for health, in connection with the government’s alleged pressure on the NPS to vote for the merger of two Samsung Group affiliates. Moon is scheduled to be summoned, Tuesday.
The allegation is key to proving the bribery allegations against the President.
When entering the special prosecutor’s office, Hong answered “no” to reporters’ questions over whether Moon ordered him to make the NPS vote for the controversial merger.
The NPS was the biggest shareholder of Samsung C&T and voted for the company’s merger with Cheil Industries in July last year.
The merger eventually helped Samsung Electronics Vice Chairman Lee Jae-yong increase his share in the group, facilitating the power transfer from his father Lee Kun-hee. Hong skipped a review of the merger by an outside pool of experts, which was standard procedure for the NPS. Civic groups argued the deal caused financial losses at the NPS to the tune of 70 billion won ($59.7 million).
It is alleged that Moon ordered Hong to get the yes vote, following Cheong Wa Dae’s instructions. Former NPS head, Choi Kwang, earlier said he refused to reappoint Hong for interfering with the vote but he was then pressured to quit by the government.
It is suspected that in return for the yes vote, Samsung provided money to two foundations and paper companies controlled by Choi and her daughter, Chung Yoo-ra.
Samsung provided the K-Sports and Mir foundations with at least 20 billion won ($16.5 million). The company is also suspected of giving 2.8 billion won to Core Sports which later become Widec Sports, a paper company Choi and Chung set up in Germany. Jang Si-ho, Choi’s niece, also received 1.6 billion won from Samsung through a children’s sports center she managed.
On July 25, five days after the NPS vote, President Park had a private meeting with Samsung Vice Chairman Lee, who said Park encouraged him to donate money to the foundations to promote culture and sports.
If these suspicions are true, the President may face charges of bribery, a crime punishable with up to life in prison.
All involved figures ― the President, Samsung officials, Choi, Hong and Moon ― have denied the allegations.
But investigators, who raided the NPS and the health ministry last week, said they secured evidence of Moon’s pressure on Hong. Both Moon and Hong can face charges of professional negligence and abuse of power.
During the raid of Moon and Kim’s homes, investigators seized computers, notes, diaries and cell phones.